I have several accounts on my credit report that show the status as 'charge-off'. What does that mean? Is it a good thing to have a charge-off or is it bad?
2007-03-14 08:23:40 · 6 answers · asked by Tiff 3 in Business & Finance ➔ Credit
It means whoever you owed the money to wrote off the debt because they couldn't collect it from you.
The bad news is, you now have to pay taxes on that because the IRS considers it income. You basically got whatever you charged for fee so it's now income.
The other bad news is they can still sell that account to a collection agency who can still try to collect it from you.
It's definitely a bad thing.
2007-03-14 08:36:36 · answer #1 · answered by Faye H 6 · 0⤊ 0⤋
These are accounts that that you owe money and the owner of the account has written the account off as noncollectable. These are really bad. You will never get credit again. You can approach the owner of these accounts and make an arrangement to pay the debt in exchange for removing them from your credit report. They may or may not. These remarks will never fall off you credit report. They have to be removed by the account owner who put them there. Until then, forget about credit.
2007-03-14 08:37:56 · answer #2 · answered by ThePerfectStranger 6 · 0⤊ 0⤋
It's a bad thing. A charge off means you didn't pay the money back and the bank got tired of messing with you/it so they felt it was easier to just charge it off than try to continue getting the money from you. there's nothing you can do to remove a charge off from you report until it falls off after 7 - 10 years.
2007-03-14 08:28:25 · answer #3 · answered by Tonya in TX - Duck 6 · 0⤊ 0⤋
Charge off is incredibly bad. That means that the credit card company has excercised every avenue that they could in order to collect the funds and have decided that you were "a lost cause". They then charge off the debt as a loss on their profit and loss sheet. Strangely enough, you can get a charge off removed from your record by calling the credit card company and negotiating a payment to them. If they charged off say 2,000 they may settle for 1,000 and remove it from your record.
2007-03-14 08:29:56 · answer #4 · answered by anysomeone 3 · 0⤊ 0⤋
Bad. It means you didn't pay your bills and they had to write off the balance. They don't consider you a good credit risk.
2007-03-14 08:28:00 · answer #5 · answered by Fordman 7 · 1⤊ 0⤋
Really bad. means the debt was so uncollectable they wrote it off completly for tax reasons. PAY IT.
2007-03-14 08:26:57 · answer #6 · answered by wizjp 7 · 0⤊ 0⤋